Windows Need some help with editing a video

i have a video clip from a DVD in VOB format, and i want to change the resolution to 960x720 and maintain the quality as best as i can

every solution i've tried has either screwed up the resolution or ruined the video quality, the one decent looking result i came up with ended with a file that was around 2gb (source file is around 250mb)

is what i want actually this difficult? i really have no idea what i'm doing with this kind of thing...

i'm using windows, and i'm willing to buy software to do this. free stuff preferred though